Thanks to this plan, the company director can now determine their own tailor-made package. The condition to be met is that the director must have an independent mandate (manager, administrator, active partner) in a company with a legal status (PLC, limited liability company, cooperative society etc.), and receive a remuneration from the company at least once a month.
Increase your immediate income or build up capital for your retirement?
With its particularly attractive taxation, the increase linked to the IPC is only subject to minimal taxation and provides you with a greater capital at retirement, compared to that built up through other salary-increase plans.
In addition to the pension aspect, the IPC enables the independent director to supplement their protection with specific cover like:
– Inability to work
A replacement income is paid out to you every month.
– Payment of premiums
The company can arrange the payment of premiums to your company if you suffer a temporary or permanent disability.
– Lump sum death benefit
The beneficiary/beneficiaries you have designated in your contract will receive a lump sum specified beforehand, should you die before your retirement.
– Lump sum in the event of accidental death
An additional lump sum amount, determined in advance, is paid out to the beneficiary/beneficiaries designated in your contract, should you die in an accident.
Your IPC can be used to guarantee or build up capital for a mortgage loan should you decide to buy, build or transform a property located in Belgium.
Premiums paid are tax-deductible as business expenses.
Restriction : 80% rule
This rule stipulates that the whole pension, in other words the sum of the legal pension and additional pensions (excluding individual life insurance contracts), may not exceed 80% of the last gross normal annual salary received.
The PSPSE (private supplementary pension for the self-employed) is taken into account in calculating this restriction.
As far as payments are concerned: :
Premiums are not considered as benefits of any kind.
Premiums for the main types of cover (life / death) are subject to insurance tax of 4.40%.
Premiums for additional accident cover are subject to insurance tax of 4.40%.
Premiums for additional disability cover are subject to insurance tax of 9.25%.
Lump sum in the event of: survival at the end of the term, death or surrender
The NIHDI (National Institute of Health and Disability Insurance) contribution of 3.55% is deducted from the total lump sum.
The solidarity contribution is applied to the total lump sum.
The lump sum (excluding bonuses) is taxed at 16.5% in the event of survival at the end of the term, from the age of 60 or at the start of retirement. This tax applies to the main lump sum after the INAMI and solidarity contributions.
Bonuses are not taxed.
Within the framework of an individual pension commitment (IPC), it is possible to make additional payments for years already worked, and therefore fill up the unused margin provided by the 80% rule. This may prove beneficial if the beneficiary’s monthly income increases or if the IPC is taken out late.
In this case, we just need to determine together what you would like to see in your plan, by taking into account your work and family circumstances in order to strike the right balance and optimise the approach.
Contact us to arrange an appointment for us to explore the possibilities offered to you.